Full Press Release Details
| Contact: | Mark Murphy, Chief Executive Officer | |
| (714) 241-4411 | ||
| Brett Maas, Investor Relations | ||
| Hayden Communications, Inc. | ||
| (646) 536-7331 |
INC. ANNOUNCES FISCAL 2007 FINANCIAL RESULTS
SIGNING OF A NEW CONTRACT
increase 8.4% for the quarter, 26.4% for the year
flow is strong with $1.5 million in operating cash generated
large Development Agreement with major U.S. medical products
September 13, 2007 - PRO-DEX, INC. (NASDAQ: PDEX) today
announced financial results for the fiscal fourth quarter and full-year period
ending June 30, 2007. It also announced the signing of a major development
net sales for the fourth quarter were $5.8 million, an increase of 8.4% compared
during the fourth quarter of fiscal 2006. For
fiscal year ended June 30 2006, the Company reported revenues of $21.6 million,
26.4% higher than the $17.1 million reported for fiscal year 2006.
income for the fourth quarter was $187,000, or $0.02 per basic and diluted
compared to $231,000 or $0.02
basic and diluted share for the fourth quarter last year. The Company reported
net income for the year of $506,000 or $0.05 per basic and diluted share
compared to net income of $827,000, or $0.09 per basic and $0.08 per fully
diluted share, last year.
Murphy, the Company's President
and Chief Executive Officer, commented, "I am extremely pleased with the
progress made to create a stable platform for growth at Pro-Dex. We've made
great strides in several key areas of the Company, including a reduction of
warranty exposure, a clearing of our engineering backlog, and a noticeable
cultural shift in our attention to all matters of quality. Our senior leadership
team is fully aligned and we have initiated work on a project that leverages
synergies of our three divisions. Lastly, we have significantly strengthened
two largest customer relationships, and are once again courting multiple future
prospects. While we are not finished with our work in these key areas, we see
definitive change in the direction of our momentum."
profit for the fourth quarter was $1.9 million, or 32.2% margin, compared to
gross profit of $1.7 million, or 31.9% margin last year. Gross profit for the
year was $7.4 million, or 34.2% margin compared to gross profit of $6.6 million,
or 38.5% margin last year. The gross profit in both years was impacted by
warranty-related costs of $979,000 this year and $709,000 in the prior year.
While the Company does not consider this issue fully resolved, the shipment
new revision product since March has demonstrated improved field reliability
that should reduce the impact of warranty-related costs on future gross
expenses increased by 1.4% to $1.49 million for the fourth quarter of 2007,
compared to $1.47 million in the fourth quarter last year. For the full fiscal
expense increased 20.1% to $6.5 million from $5.4 million last year, but as
percentage of sales, was reduced from 31.9% to 30.3% percent. Approximately
of the annualized increase in operating expenses is related to the inclusion
a full year of Astromec's operating expenses this year versus only six months
included in last year as well as the $242,000 impact of the new FAS 123(R)
reporting requirements associated with equity-based compensation compared to
Company's backlog as of June 30, 2007 was $10.1
million, compared to $11.7 million at June 30, 2006, reflecting normal
fluctuations in bookings experienced by the Company. The Company's backlog has
ranged between $9 and $12 million over the last year. The sustained strength
backlog while achieving the 26% top line growth indicates robust bookings as
the fiscal year with cash and cash equivalents of $403,000 compared to cash
cash equivalents of $358,000 as of June 30, 2006. Generating $1.5 million in
operating cash for the year, compared to $55,000 in fiscal 2006, enabled the
Company to make necessary investments while reducing its total debt from $3.8
million to $2.8 million. Since June 30, 2007, the Company has reduced its debt
further and has completely paid off its credit line, leaving the entire $2.0
million borrowing capacity available.
Murphy continued, "While we do not view this year's earnings results as
indicative of the Company's earnings potential, we are quite pleased that the
Company delivered profitability and solid cash generation during a most
Company also announced today that it has entered into a development agreement
with a major U.S. medical products provider, whose name cannot be disclosed
this time due to confidentiality covenants. The development agreement provides
for approximately $275,000 in development fees that are included in the backlog,
and contemplates that, upon successful completion of the device, Pro-Dex will
exclusively manufacture the system for the customer. Revenue from this product
during the first 12 months of shipments, expected to begin in May of 2008,
estimated between $1.2 and $2.4 million and is not included in the current
Murphy concluded, "This new project confirms that we are headed in the right
direction, building the Company for long-term growth and profitability. It
also the first project that fully leverages the synergies between our three
business units as they each are involved in this development effort. I look
forward to sharing the complete picture of what is happening in the Company
during our upcoming teleconference and encourage all interested investors to
and all others are invited to listen to a conference call discussing the fourth
quarter and fiscal 2007 results today at 4:30 p.m. Eastern Time. The call is
scheduled to be broadcast live over the Internet and may be accessed by visiting
the Company's website at http://www.pro-dex.com. Mark Murphy, Chief Executive
Officer and Jeff Ritchey, Chief Financial Officer, plan to host the call. If
would like to join the call, dial (866) 323-3543 U.S. and (706) 679-0672
International, conference I.D. 15891428. You may identify the call as the
Pro-Dex Fourth Quarter Earnings Call. An online archive of the broadcast will
available within one hour of the completion of the call and will be accessible
on the Company's website for 30 days. Additionally, a telephone replay will
after the call for 48 hours by dialing (800) 642-1687 U.S. or (706) 645-9291
international callers, conference I.D. number 15891428.
Inc., with operations in Santa Ana, California, Beaverton, Oregon and Carson
City Nevada, specializes in bringing speed to market in
the development and manufacture of technology-based solutions that
incorporate embedded motion control, miniature rotary drive systems and
fractional horsepower DC motors, serving the medical, dental, semi-conductor,
scientific research and aerospace markets. Pro-Dex's products are found in
hospitals, dental offices, medical engineering labs, scientific research
facilities, commercial and military aircraft, and high tech manufacturing
operations globally.
information, visit the Company's website at www.pro-dex.com.
herein concerning the Company's plans, growth and strategies may include
'forward-looking statements' within the context of the federal securities laws.
Statements regarding the Company's future events, developments and future